Loan against fd taken for income tax saving 80c
This query is : Resolved
Rohit Gupta
(Querist)
04 July 2013
Dear Sir,
whether it is posible to take loan against Fixed Deposit taken under 80C of income tax (i.e for the purpose of saving the tax, Fixed deposit done in SBI lock in period for FD is 5 Yrs. as per provision of income tax.
And whether there is any tax implication for the same.
whether it is posible to take loan against Fixed Deposit taken under 80C of income tax (i.e for the purpose of saving the tax, Fixed deposit done in SBI lock in period for FD is 5 Yrs. as per provision of income tax.
And whether there is any tax implication for the same.
Karan Teli
(Expert)
04 July 2013
With regards to this particular section i would draw your attention to following points prima facie -
- An assessee can invest in the fixed deposit any amount not exceeding Rs. 1 lakh in a year.
- Fixed deposits made upto Rs. 1 lakh for a period of 5 years are exempted from payment of income tax under Sec 80C.
- The maturity period of term deposit shall be five years commencing from the date of the receipt. No term deposit can be encashed before the expiry of five years from the date of its receipt.
- No premature payment before 5 years possible.
- The deposit cannot be pledged to secure any loans or as security to any other loan/facility.
The last point would answer your query.
Conclusion - "N0" you cannot take a loan against this FD.
- An assessee can invest in the fixed deposit any amount not exceeding Rs. 1 lakh in a year.
- Fixed deposits made upto Rs. 1 lakh for a period of 5 years are exempted from payment of income tax under Sec 80C.
- The maturity period of term deposit shall be five years commencing from the date of the receipt. No term deposit can be encashed before the expiry of five years from the date of its receipt.
- No premature payment before 5 years possible.
- The deposit cannot be pledged to secure any loans or as security to any other loan/facility.
The last point would answer your query.
Conclusion - "N0" you cannot take a loan against this FD.
Rohit Gupta
(Querist)
04 July 2013
Thank you
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